There are so many options in the US auto market now. You can buy a new car. You can buy a used car. Or you can rent a new car. Or you can rent a used car. While these many options seem like a blessing to many, it can become confusing at times, especially when you need a car fast without disrupting your overall budget anyhow. Whether you buy or rent, both sides have pros and cons and it ultimately comes down upon you to decide which advantages will truly help you and which downsides you can live with. For a quick guide, the distinctive pros and cons of renting and buying a used car are discussed here. Let’s omit buying a new car as the stories of this angle is no more news to anyone.
The pros of renting a car
Renting or leasing a car has its fair share of fame for good reasons. The typical ones include:
- Monthly lease payments are almost 60% less than monthly credit payments. So, your monthly budget almost always remains under check.
- Most cars that come for renting are under the manufacturer’s warranty period. This way, you get to avoid expensive repair works by always leasing.
- Lastly, you get to change your car’s model at the end of every lease period. You can also have the emotion of driving a new car every two to three years.
The cons of renting a car
Although the benefits of leasing a car may seem lucrative, the flip side of it will help you to paint a more realistic picture.
- Leased cars come with a lot of terms and conditions. You get a fixed mileage up to which you can drive. You also need to carry out timely maintenance and do not have the scope to procrastinate on anything. Not complying attracts hefty penalties after the lease period.
- Over time, the monthly lease or rent amount accumulates and becomes a figure that is way more than what it would have cost you to buy a used car. In the long-term, renting a car is not a sound investment policy.
- You never actually own the car. Neither can you claim the monetary equivalent of owning the car as an asset. After the lease period, you actually walk out without a vehicle with nothing in hand.
The pros of buying a used car
If you contemplating buying a car, used cars will cost you almost half of a new car due to the steep rate of depreciation. With this established, here are the pros of purchasing one for your garage.
- First up, you own the car. It is yours. You can customize the car in any way you want. You can sell it later to claim the monetary equivalent. It will be your asset at any given time.
- You will have no worries about end-of-lease-term charges. There is no cap on mileage. And you can procrastinate a bit on your maintenance routines. Nothing will attract any penalty for you.
- You can spread out the overall cost of the car over multiple years, an option you do not have with leasing. You can take a credit for 10 years instead of 5 and pay less monthly without the worry that you are paying way above the cost of a new car.
The cons of buying a used car
Every coin has two sides and buying a used car is no different.
- As already stated, the monthly credit payments are generally more than the monthly lease payments. But you can plan well and reduce it by spreading your overall credit over multiple years.
- The car is always your responsibility. With renting, you become free of trading the car once the lease period is over. When you buy a car, you will have to undertake the duty of reselling your car.
After the warranty period of your used car, you will have to incur the expenses of all its repair work. This is generally absent in case of leasing. But proper servicing can make your used car run for an eternity.
And there you are!
Fully equipped to make your choice. Lease or buy, always keep your mind straight and make an informed decision. Find the right dealers, get the proper coverages, and peacefully drive any car you want.